Karoon gets approval for Brazilian appraisal program

Karoon Gas Australia Ltd., Melbourne, has received approval from the Brazilian oil and gas regulator for its revised appraisal program for the company’s 65%-owned Santos basin blocks.

The forward work program includes the commencement of appraisal drilling on the Echidna light oil discovery during 2016. Karoon also expects to install an early production system (EPS) on the field, although this is contingent on the continued success of the appraisal drilling

The EPS is likely to comprise two or more production wells that will provide important technical information about reservoir performance and form the basis of a full field development. In addition, the EPS would provide an analogue for understanding the nearby Kangaroo oil find and any similar discoveries in the company’s permits.

A 3D seismic survey also is planned to enable better risking and ranking of other prospects in the permits. Further discoveries would be tied back to a centrally located floating production, storage, and offloading vessel.

An added contingent work program is expected to start at the beginning of 2019 and comprise as many as four wells.